Capitalism and Communism are two entirely diverse economic systems. Capitalism is an economic system characterized by freedom of the market. Capitalism has many pros to go along with its economy. The government will change gradually, but is able to adjust to it with ease. Communism can be defined as an economic and political system in which facts of production are collectively owned and directed by the state. As you will easily see capitalism and communism are viewed as two opposing political and economic structures.
In a capitalism economy each person has individual freedom with lack of government interference. But the downside to this is that not everybody will have a job, and the government will not help him or her find one. It all depends on what you do, whom you work for, and how long you decide to work. In a free enterprise economy we often take for granted the freedom that we have. We are able to choose an occupation for ourselves. We choose whether or not to own our own business or to work for someone else. Unlike in communist economies we have the ability to leave jobs and move on to others that allow us to “climb the professional ladder”. Another major benefit of capitalism is private property, the concept that people have the right and privilege to control their possessions as they wish. In a capitalism economy the role of government reflect the desire and goals of its citizens. Government also provides goods and services for its entire people.
The Essay on Market Economy Government Economic Resources
The economic problem occurs when society has unlimited wants, yet limited resources available. This problem affects the economies of individuals, businesses and governments. Wants can be defined as materialistic desires of individuals or the community, which are desired because they give utility. Resources enable an economy to produce, and include the four factors of production: land, labour, ...
Communism has had many drastic changes at a time, but has been able to overcome them. One of the advantages of communism is that everybody has a job, but the downside is that no matter how much you work or whom you work for, you will always be getting paid the same amount of money as everyone else. . In our economy, you must work to make money. The more you work, the more you will get paid and now you will be able to buy what you need, and what you want. In a communist economy, you can work as much as or as little you want, but you will still get paid the same amount of money as everyone else. Why would you want to work so hard if you were going to make the same amount of money? Another weak spot about communism is the fact that consumers will not always get what they desire because the government decides on what you will buying. In a communistic society, the government makes all decisions for you. Adam Smith and Friedrich Engels are two Philosophers who contributed to the framework for the two opposing economic systems that still hold true today. Smith, who wrote “Wealth of Nations”, is known for his strong belief in capitalism. In his book he stated that if every does what he or she does best, the society as a whole would become more productive. Engels, on the contrary, wrote the book “The Communist Manifesto”, and believed strongly in communism. Another one of the main advantages of communism is security. Because of a steady job workers seldom face unemployment.
In conclusion, capitalism is a much better economic system because you do not have the lack of restrictions compared to if you were a communist. There are so many more advantages for being a capitalist than being a communist including better working conditions and more freedom, and who doesn’t want more freedom?
